The Southern Banc Company, Inc. Announces First Quarter Earnings

(MENAFN- GlobeNewsWire - Nasdaq) GADSDEN, Ala., Nov. 12, 2026 (GLOBE NEWSWIRE) -- The Southern Banc Company, Inc. (OTCID: SRNN) (“the Company”), the holding company for The Southern Bank Company (“the Bank”), formerly First Federal Savings and Loan Association of Gadsden, Alabama, announced net income of approximately $762,000, or $1.00 per basic and $0.99 per diluted share, for the quarter ended September 30, 2026, compared to a net income of approximately $188,000, or $0.25 per basic and diluted share, for the quarter ended September 30, 2025.

Gates Little, President and Chief Executive Officer of the Company stated that the Company's net interest income increased approximately $842,000, or 37.34%, during the quarter, compared to the same period in 2025. For the three months ending September 30, 2026, total interest income increased by approximately $851,000, or 28.93%, compared to the same period in 2025. Total interest expense increased approximately $9,000, or 1.31%, for the three-months ended September 30, 2026, compared to the same period in 2025. There was no provision for credit losses for the quarter ended September 30, 2026, compared to approximately $76,000 for the three-months ended September 30, 2025. For the quarter ending September 30, 2026, total non-interest income decreased approximately by $13,000, or (8.84%), while total non-interest expense increased approximately by $130,000, or 6.28%, compared to the same three-month period in 2025. The decrease in non-interest income was primarily attributable to a decrease in miscellaneous income of approximately $11,000, or (9.40%). The increase in non-interest expense was primarily attributable to increases in other operating expenses of approximately $85,000, or 37.12%, and salaries and benefits of approximately $69,000, or 5.16%, offset in part by a decrease in professional service expenses of approximately $27,000, or (12.80%).

The Company's total assets at September 30, 2026 were $132.3 million, compared to $131.8 million at June 30, 2026. Total stockholders' equity was approximately $18.4 million at September 30, 2026, or 13.89% of total assets, compared to approximately $18.4 million at June 30, 2026, or approximately 13.97% of total assets.

The Bank has four offices located in Gadsden, Albertville, Guntersville, and Centre, Alabama and a loan production office located in Birmingham, AL. The stock of The Southern Banc Company, Inc. trades on the OTC Basic Market under the symbol“SRNN”.

Certain statements in this release contain“forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which statements can generally be identified by the use of forward-looking terminology, such as“may,”“will,”“expect,”“estimate,”“anticipate,”“believe,”“target,”“plan,”“project,”“continue,” or the negatives thereof, or other variations thereon or similar terminology, and are made on the basis of management's plans and current analyses of the Company, its business and the industry as a whole. These forward-looking statements are subject to risks and uncertainties, including, but not limited to, economic conditions, competition, interest rate sensitivity and exposure to regulatory and legislative changes. The above factors, in some cases, have affected, and in the future could affect the Company's financial performance and could cause actual results to differ materially from those expressed or implied in such forward-looking statements, even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

THE SOUTHERN BANC COMPANY, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Dollar Amounts in Thousands)
		September 30,			June 30,
		2026			2026
		Unaudited			Audited
ASSETS
CASH AND CASH EQUIVALENTS	$	9,396			$	19,184
SECURITIES AVAILABLE FOR SALE, at fair value		43,262				43,424
FEDERAL HOME LOAN BANK (FHLB) STOCK		133				133
LOANS RECEIVABLE, net of allowance for loan losses of $2,032 and $1,715		75,379				65,358
PREMISES AND EQUIPMENT, net		1,147				1,148
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE		1,270				1,105
PREPAID EXPENSES AND OTHER ASSETS		1,738				1,413
TOTAL ASSETS	$	132,325			$	131,765
LIABILITIES
DEPOSITS	$	103,117			$	104,341
FHLB ADVANCES AND OTHER BORROWED MONEY		-				-
OTHER LIABILITIES		10,833				9,012
TOTAL LIABILITIES		113,950				113,353
STOCKHOLDERS' EQUITY:
Preferred stock, par value $.01 per share 500,000 shares authorized; no shares issued and outstanding		-				-
Common stock, par value $.01 per share, 3,500,000 authorized, 1,454,750 shares issued		15				15
Additional paid-in capital		13,950				13,951
Shares held in trust, 45,911 at cost		(787	)			(787	)
Retained earnings		16,977				16,215
Treasury stock, at cost, 648,664 shares		(8,825	)			(8,825	)
Accumulated other comprehensive (loss) income		(2,955	)			(2,157	)
TOTAL STOCKHOLDERS' EQUITY		18,375				18,412
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	132,325			$	131,765

THE SOUTHERN BANC COMPANY, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Dollar Amounts in Thousands, except per share data)
		Three Months Ended
		September 30,
		2026			2025
		(Unaudited)			(Unaudited)
INTEREST INCOME:
Interest and fees on loans	$	3,337		$	2,431
Interest and dividends on securities		313			239
Other interest income		143			272
Total interest income		3,793			2,942
INTEREST EXPENSE:
Interest on deposits		696			687
Interest on borrowings		-			-
Total interest expense		696			687
Net interest income before provision for loan losses		3,097			2,255
Provision for loan losses		-			76
Net interest income after provision for loan losses		3,097			2,179
NON-INTEREST INCOME:
Fees and other non-interest income		28			30
Net gain on sale of securities		-			-
Miscellaneous income		106			117
Total non-interest income		134			147
NON-INTEREST EXPENSE:
Salaries and employee benefits		1,406			1,337
Office building and equipment expenses		102			98
Professional services expense		184			211
Data processing expense		195			196
Other operating expense		314			229
Total non-interest expense		2,201			2,071
Income before income tax expense		1,030			255
INCOME TAX EXPENSE		268			67
Net income	$	762		$	188
INCOME PER SHARE:
Basic	$	1.00		$	0.25
Diluted		0.99			0.25
DIVIDENDS DECLARED PER SHARE	$	-		$	-
AVERAGE SHARES OUTSTANDING:
Basic		760,175			762,005
Diluted		766,439			765,285

Contact:
Gates Little
(256) 543-3860

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